CVR Refining's Second Quarter: Cash Hoard Raises Questions
For the seventh quarter in a row, CVR Refining (NYSE: CVRR) hasn't been able to do what its investors expect it to do as a master limited partnership: pay a distribution. That is due in part to the challenging refining market, but there may be more to the story. The company is holding on to a lot of cash right now, which seems unusual. Let's take a look at CVR's most recent results and contemplate what this cash pile could be used for in the future.
Data source: CVR Refining earnings releases. EBITDA = earnings before interest, taxes, depreciation, and amortization.
CVR Refining's results continue to be thrown around by the whims of the oil and refined-product markets. After the prior quarter's surprise profit, the company's second-quarter results slid right back into the loss column as refining margins retreated to $7.48 per barrel, after adjusting for inventory-value impacts. That margin is simply too low for CVR to cover its expenses and turn a profit.
Source: Fool.com
